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Innovation Types and Network Relationships

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Entrepreneurship Theory and Practice

Published online on

Abstract

We examine network relationships, particularly the type and strength of these relationships and how firms use them in order to commercialize different types of innovations. We conduct an in‐depth case study of four small firms to provide insight on how and why a portfolio of network relationships (e.g., suppliers, distributors, customers, and research institutes) helps small new innovative firms to gain resources. We develop a framework of four innovation types and expand on how successful commercialization for each innovation type requires certain types and strength of relationships. Both types (systemic and autonomous) of radical innovations require strong collaborative ties with customers, whereas incremental innovations are commercialized through different types of downstream networks.